NFT Tickets: The digital art market is excited over a new technology known as NFT (non-fungible token).
The NFT-arts market increased by 178.5 percent, from $23 million to $432 million, in Q1 of 2021-22.
It’s time for this innovation to break into new consumer sectors. NFT, for instance, can boost event planning, leading to higher ticket sales.
In addition, using NFT can improve the process in many ways.
What is the Function of NFT in Ticketing?
Non-fungible tokens (NFTs) are cryptographic assets recorded on a distributed ledger.
Each NFT has a unique digital token identifier. On the blockchain, things can be made and sold digitally to buyers.
Then, users can store their NFTs in a safe digital wallet that can be accessed from any device.
In the ticketing system, the necessary number of NFT tickets can be “minted” on the blockchain network of the event’s choice.
The NFTs can be set up to have a fixed price or to work like an auction where people submit bids.
Tickets based on NFT are bought from the ticket company by the customer. After a sale, a smart contract in a ticketing database will automatically send an NFT to the buyer.
The service that sells tickets has asked that the ticket be put on IPFS. IPFS calculates the hash, and the database keeps track of the tickets.
The NFT marketplace that was asked for is updated with newly made NFT tickets.
NFT holders can sell their tickets on the NFT marketplace (What is NFT and How is It Important for Creators and Businesses)if they want to. The ticket is in a smart contract. With a smart contract, the seller gets paid as soon as someone buys a ticket from the seller.
What Problems does the Old Way of Selling Tickets Have?
Scalping (sales based on speculation) (speculative sales)
Scalping is buying tickets close to the event and quickly selling them elsewhere for more money.
Most websites like OLX, Craigslist, and Viagogo exist for this reason.
Data shows that more than 20% of people who went to the game got their tickets from websites that resell tickets.
Almost always, they were men (probably because they buy tickets more regularly).
According to research, at least 10% of tickets sold in the United States are fake.
Most of the time, you are more likely to buy a phony ticket if the event is more important.
Even though there are many ways to check whether or not a ticket is accurate, the numbers still need to be higher.
Experts say that the main reason is that speculators use a lot of bots to buy tickets at the last minute, while regular customers don’t.
Then, the scammers sell the tickets on sketchy websites where actual tickets are expensive and cheap ones are almost always fake.
Most people choose the least costly choice when they have a choice.
The Lack of Rules for Communicating
Many different web-based systems support the ticket market today.
However, without common standards for how other ticket markets share information, the risk of fraud increases, and the market dries up.
Also, because there are no exchange mechanisms in place right now, it’s harder to spot fake tickets because they’re being sold on many different platforms.
There is no centralized way to check if tickets are authentic. They need to use the same communication standard or database to do this.
Not only that, but it’s easier to stop the speculators if you have these rules in place.
For example, if the organizers decide that each customer can only buy up to five tickets, the speculator can buy five tickets on one platform, five on the other, and so on.
How Much the Service Costs?
When you buy a ticket, you get more than just a spot in the show. There is also a service charge (the one we pay, We don’t need to buy tickets at the box office).
It’s usually not advertised because it’s already included in the ticket price, but it can make up as much as 27% of the total.
This 27% figure includes all the running costs, platform earnings, risk premiums, delivery fees, etc.
Clients have Faith in You
The study’s results show that 65 percent of customers worry about buying a fake ticket or becoming a victim of some other kind of fraud (men are 2.5 times more exposed to fraud than women).
People often purchase pricey tickets or plan to travel to another city for an event because they want to take advantage of it.
It’s a problem because it cuts into everyone’s profits in the market.
The Benefits of Using NFT Technology to Sell Tickets
NFTs could change how ticket buyers and event organizers buy and sell tickets. This is a list of some of the critical benefits of NFT:
Keeping Fake Tickets and Cons from Happening
Blockchain gives both ticket holders and event organizers a reliable source of information.
For example, the transfer of NFTs from the 1st sale to the 2nd sale is permanently recorded on the blockchain so that everyone can prove the ticket is genuine.
In addition, when resell tickets are not allowed, NFTs can be made so they can only be moved to one buyer.
Compared to the traditional ticketing system, they are selling and making NFTs doesn’t cost much.
You can create an unforgeable ticket for less money, and customers and event organizers can check that every ticket on the chain is confirmed and see who owned it before.
Easy to Make
In contrast to the usual way of digitizing tickets, the way to create and mint NFTs in as little time as possible. So in less than a minute, NFT can be made and be ready to sell.
Because programmable NFTs can have built-in rules for merchandise, content, resale, and royalty splits.
The organizer can figure out the profit-sharing percentages for future resale or creative content on secondary markets and get paid, knowing that the tickets can’t be changed because of the NFT’s coding.
More Ways to Make Money
NFT-based tickets can be used as programmable money, which opens up a lot of new ways to make money.
For example, NFT tickets can be resold as collectibles, used to get deals on food and drinks, and fans with many event tickets can be rewarded.
What Options do Visitors have with NFT Tickets?
Let’s look at the benefits that NFT tickets give to people who go to the event:
The event’s organizers gave them money and other benefits.
Event organizers can use the fact that NFT tickets can be linked to a user’s wallet after the first sale to start some loyalty programs.
It could be a bonus, a discount, or even the chance to meet their favorite musician.
Putting NFT Tickets Up for Sale as Collectibles
Since each NFT ticket is unique, it can be used to collect cards, stamps, or coins.
The fact that NFTs are selling well on marketplaces like OpenSea, Sandbox, super rare, and Rarible shows that people want this kind of content more and more.
Tickets are Sold on the Secondary Market
Non-Final-Sale Tickets (NFTs) let people sell their tickets to future events safely and quickly.
Due to the lack of risk for the buyer, the resale price of the ticket on the secondary market may be the same as the official resale price for the event.
A Greater Degree of Privacy and Safety
When NFT tickets are issued on large networks like Bitcoin, Ethereum, Binance, and BSC, which are hard to hack because they use distributed registries, blockchain technology dramatically improves the security of the resulting transactions.
Trading in NFT Tickets on the Secondary Market
The secondary market was closed to event organizers, venues, and performers for a long time.
But, unchecked and based on a lot of guesswork, it hurts fans and artists, who may lose customers because of the high prices.
There is hope that NFT tickets will solve the problem. Then, artists and event organizers can make smart contracts to control the secondary ticket market.
NFTs might have benefits like royalties on resales, price caps, and the ability to add some useful features.
When fans buy NFT tickets, they can sit closer to the action. It’s a sign that they have more control over what their favorite bands or artists do.
Buying an NFT ticket gives you a lot more than just access. You can keep it as a reminder and trade it for other things.
A wallet that you can trust to hold your money. You can give away a T-shirt, a burger, a signed poster, or $100 to spend at the performance location, among other things.
Thanks to NFTs, markets for unique experiences are coming together. For example, you can use the same NFT to get into a show, your hotel room, a nearby theme park, and even a rental car when you vacation.
In some situations, selling and minting NFT tickets can be done for less money than making and distributing traditional tickets.
Who is using NFT Tickets Already?
The Kings of Leon are who they are. Kings of Leon’s eighth studio album, “When You See Yourself,” came out at the beginning of 2021.
Three kinds of limited edition NFTs could be bought to promote the album.
The first two NFTs are the album (sound recordings) and a great limited edition set (vinyl and a digital album cover that moves and changes colors).
The third kind of NFT comprises 18 “golden tickets.” Six were auctioned off, and the other 12 were put in a digital safe to be given out later.
Each holder of a “golden” NFT has the right to four permanent front-row seats at any future Kings of Leon show of their choice.
In addition to the concert, the NFT ticket holder gets a VIP experience that includes a chauffeur to and from the venue, a dedicated concierge service during the show, the chance to meet the performers, VIP access to the venue’s lounge, and swag like tote bags, t-shirts, and more.
The Football Team was Known as "Dynamo
The Ukrainian team was the first team for a major club to use NFT tickets.
In July 2021, they gave 300 people who followed them on social media special NFT tickets.
The tokens were put out into the world by the Binance platform. As a result, about a quarter of the “Dynamo” home game tickets will be sold through NFT.
The Dallas Mavericks are Who They are
Mark Cuban, the Dallas Mavericks’ wealthy owner, has said that he will switch to the NFT for the next NBA season.
He thinks that making trading cards would be a good idea that shows important moments in the club’s history. He also wants to earn enough money to buy tickets to the Dallas Mavericks games.
Due to improvements in blockchain technology and the rise of the third-generation Internet, performers, event organizers, and attendees are in a better position than ever to shape the ticketing system to their liking.
Making tickets for NFT events on a blockchain makes it easy to check if they are authentic, and fake passports can’t be passed around.
In addition, using the NFT ticketing system, promoters and artists can better handle both primary and secondary ticket sales while getting closer to their fans.
Even though the NFT business is still young, its fast growth could make the traditional ticketing system and other parts of the live event industry better.